Question 17 Not yet answered Marked out of 2.00 K-Roo Ltd. and Ala Co. both want to borrow AUD 116 million. K-Roo Ltd. can borrow fixed-rate JPY at a rate of 4.57%, or it can borrow floating-rate AUD at LIBOR + 0.2%. Ala Co. can borrow fixed-rate JPY at a rate of 4.76%, or it can borrow floating-rate AUD at LIBOR + 0.88%. K-Roo Ltd. would like to borrow fixed-rate JPY and Ala Co. would like to borrow floating-rate AUD. The current exchange rate is JPY57/AUD. The intermediary bank charges a fee of 8 basis points to arrange the swap. What are the possible cost savings to K-Roo Ltd. in JPY terms from a swap agreement, if all remaining cost savings accrue to K-Roo? Flag question O a. 27.1092 million O b. 0.0100 million O c. 32.3988 million O d. 0.0083 million O e. There are no cost savings to K-Roo Ltd. from a swap